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CN Rail and Teamsters reach tentative agreement to avoid strike

CANADIAN National Railway (CN Rail) and the union for more than 3,000 conductors, train and yard workers have reached an agreement in principle on a new collective agreement, averting a possible labour disruption that could have started early Tuesday morning (Wednesday Hong Kong time).

Teamsters Canada Rail Conference (TCRC) president Doug Finnson told CBC News the two sides are still working on the wording of the agreement.

A CN spokesman said the company was pleased to have reached a verbal agreement with the union.

Details of the agreement are being withheld pending ratification by TCRC members, a process expected to take approximately 60 days.

A new deal must still be ratified in a vote by union members over the coming days and weeks.

Last week, the Teamsters union announced its members had voted 98 per cent in favour of a strike mandate.

Mike Cory, CN executive vice-president and chief operating officer, said: "CN is very pleased to have reached this settlement with TCRC-CTY without a service disruption. This new agreement reinforces CN's commitment to working together with our employees and their representatives to address workplace issues in a mutually beneficial manner."

Bob Ballantyne, president of the Freight Management Association of Canada, said averting a rail strike is good news for the Canadian economy. "I think all shippers that depend on CN will certainly be breathing a sigh of relief and I suspect the government will be breathing a sigh of relief as well," he said.